Chinese aluminium maker to invest $400m in India
Sunday, 19 August 2007
YINCHUAN, Aug 18 (PTI): China's second largest aluminium maker Qingtongxia Aluminium Group will make the country's biggest investment so far in India by pumping in USD 400 million in a joint venture in Gujarat to produce alumina, senior Chinese officials said here yesterday.
"The Qingtongxia Aluminium Group's proposal to invest in India has received approval from the National Development Reform Commission (NDRC)," Vice Governor of Ningxia Hui Autonomous Region, Qi Tong-Sheng told PTI here.
Qi, also a senior member of the ruling Communist Party of China, said the NDRC, China's top planning body has approved the Chinese company's planned investment of USD 400 million in two phases in its joint venture with Mumbai-based Ashapura Minechem Co. to produce alumina.
In the first phase the 50:50 joint venture project plans to produce 500,000 tonnes of alumina which would be go up to one million tonnes.
This is the Ningxia-based Chinese company's first investment in alumina, the main raw material for aluminium production. The investment is set to be China's biggest investment in India so far, officials said.
The Ashapura Group is India's largest mine owner, processor and exporter of bentonite, bauxite, allied minerals and their multi-application, multi-industry value added products. It is also among the five largest bentonite producers in the world.
However, officials with the Ningxia government said the project is facing "trouble" in getting approvals from the Indian government.
"As far as I know, the project is not going well. The license has not been issued so far by the Indian authorities," the Deputy Director General of Investment Promotion Bureau of Ningxia, Chen Zhigang said.
Chen said that the CPC Secretary of Ningxia, Chen Jianguo, who visited India earlier this year, is keen to push forward economic and business links between Ningxia and India.
The Qingtongxia Aluminum Group's proposal to invest in India comes at a time when the Chinese government is actively encouraging domestic companies to go global in view of the severe resource shortage faced by the country which has to sustain its double-digit economic growth by relying more on overseas supplies.
"The Qingtongxia Aluminium Group's proposal to invest in India has received approval from the National Development Reform Commission (NDRC)," Vice Governor of Ningxia Hui Autonomous Region, Qi Tong-Sheng told PTI here.
Qi, also a senior member of the ruling Communist Party of China, said the NDRC, China's top planning body has approved the Chinese company's planned investment of USD 400 million in two phases in its joint venture with Mumbai-based Ashapura Minechem Co. to produce alumina.
In the first phase the 50:50 joint venture project plans to produce 500,000 tonnes of alumina which would be go up to one million tonnes.
This is the Ningxia-based Chinese company's first investment in alumina, the main raw material for aluminium production. The investment is set to be China's biggest investment in India so far, officials said.
The Ashapura Group is India's largest mine owner, processor and exporter of bentonite, bauxite, allied minerals and their multi-application, multi-industry value added products. It is also among the five largest bentonite producers in the world.
However, officials with the Ningxia government said the project is facing "trouble" in getting approvals from the Indian government.
"As far as I know, the project is not going well. The license has not been issued so far by the Indian authorities," the Deputy Director General of Investment Promotion Bureau of Ningxia, Chen Zhigang said.
Chen said that the CPC Secretary of Ningxia, Chen Jianguo, who visited India earlier this year, is keen to push forward economic and business links between Ningxia and India.
The Qingtongxia Aluminum Group's proposal to invest in India comes at a time when the Chinese government is actively encouraging domestic companies to go global in view of the severe resource shortage faced by the country which has to sustain its double-digit economic growth by relying more on overseas supplies.